This appendix covers the following topics:
The Loans Forgiveness Program is designed to help borrowers pay back the loan principal. This works with Loans Billing and automatically adjusts specified percentage of loan principal amount. It has the following characteristics:
It is configured separately for every operating unit under System Options.
It can be added to a loan product.
It can be turned on or off in a loan at anytime.
Any changes in a loan related to Loans Forgiveness Program is available under Loan History in the Servicing tab.
Setup a new AR receivable activity to be used by the Loans Forgiveness Program. Go to Receivables Manager, select Setup: Receipts, select Receivable Activities, then select New.
Assign the new AR receivable activity to Loans Forgiveness Activity Name. Go to Loan Administration, select the Operating Unit. Under Loans Setup, select System Options, and under Loans Forgiveness Adjustment select the Activity Name.
To disable the Forgiveness Program, set the Loans Forgiveness Adjustment Activity Name to NULL. Loans Forgiveness Program region stops appearing in all products and all loans of that Operating Unit, and no forgiveness adjustment is performed during billing.
Go to Loan Product setup, under the Terms tab in the Loans Forgiveness Program region, set Enable Forgiveness Program to Yes and Percent of Installment (%) to a value between 0 and 100.
To disable Loans Forgiveness Program, set Enable Forgiveness Program to No.
Go to the Origination tab for the loan. in the General tab under Loans Forgiveness Program region, set Forgiveness Program to Yes and Percent of Installment (%) to a value between 0 and 100.
To disable Loans Forgiveness Program, Set Enable Forgiveness Program to No.